US commercial crude oil inventories fell by 4.3 million barrels to 401.49 million barrels in the week to Aug 31, the lowest since February 2015, US Energy Information Administration (EIA) data showed on Thursday.

But sentiment suffered due to a rise in refined product stocks coupled with relatively weak demand for fuel during this summer's US driving season — when consumption normally peaks.

Gasoline stocks rose by 1.8 million barrels, while distillate stockpiles, which include diesel and heating oil, climbed by 3.1 million barrels, the EIA said.

"(Gasoline) stocks ... are now 3.5% above the year-ago level. More worryingly, the surplus to the five-year norm now stands at 5.4%, the highest since June 2017," Stephen Brennock of London brokerage PVM said.

"This bears all the hallmarks of a disappointing summer driving season. As a result, the alarm bells are now ringing that a gasoline glut will persist for the foreseeable future," he added.

On the supply side, US crude oil production last week remained at a record 11 million barrels per day (bpd), a level it has largely been at since July.

Outside the United States, US sanctions against major oil producer Iran are fuelling expectations of a tighter market towards the year-end.

"The main driver of oil prices, in our view, remains the reimposition of US. ... sanctions against consumers of Iranian oil," Standard Chartered said this week.